Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidating Statements of Operations

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		3,884		4,229		—		8,113
Operating revenue - affiliates	—			—		130		285		(308	)	107
Total operating revenue	—			—		4,014		4,514		(308	)	8,220
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		2,209		1,728		—		3,937
Selling, general and administrative	12			3		392		1,255		(308	)	1,354
Operating expenses - affiliates	—			—		176		81		—		257
Depreciation and amortization	—			—		688		1,016		—		1,704
Total operating expenses	12			3		3,465		4,080		(308	)	7,252
OPERATING (LOSS) INCOME	(12		)	(3	)	549		434		—		968
OTHER INCOME (EXPENSE)
Interest income (expense) - affiliates, net	2,430			1,562		(3,800	)	(125	)	—		67
Interest expense	(33		)	(457	)	(3	)	(16	)	—		(509	)
Equity in net (losses) earnings of subsidiaries	(2,044		)	(3,257	)	254		—		5,047		—
Other income, net	(9		)	—		1		19		—		11
Total other income (expense), net	344			(2,152	)	(3,548	)	(122	)	5,047		(431	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	332			(2,155	)	(2,999	)	312		5,047		537
Income tax benefit (expense)	10			111		(232	)	(85	)	—		(196	)
NET INCOME (LOSS)	342			(2,044	)	(3,231	)	227		5,047		341
Other comprehensive loss, net of income taxes	(195		)	—		—		(195	)	195		(195	)
COMPREHENSIVE INCOME (LOSS)	$	147		(2,044	)	(3,231	)	32		5,242		146

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		748		671		(28	)	1,391
Operating revenue - affiliates	—			—		16		—		—		16
Total operating revenue	—			—		764		671		(28	)	1,407
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		418		300		(28	)	690
Selling, general and administrative	1			3		179		70		—		253
Operating expenses - affiliates	—			—		24		—		—		24
Depreciation and amortization	—			—		117		165		—		282
Total operating expenses	1			3		738		535		(28	)	1,249
OPERATING (LOSS) INCOME	(1		)	(3	)	26		136		—		158
OTHER (EXPENSE) INCOME
Interest income	—			—		1		—		—		1
Interest income (expense) affiliates, net	262			368		(578	)	(41	)	—		11
Interest expense	(5		)	(72	)	—		(3	)	—		(80	)
Equity in net (losses) earnings of subsidiaries	(827		)	(15	)	71		—		771		—
Other income (expense), net	1			—		2		—		—		3
Total other (expense) income, net	(569		)	281		(504	)	(44	)	771		(65	)
(LOSS) INCOME BEFORE INCOME TAX (EXPENSE) BENEFIT	(570		)	278		(478	)	92		771		93
Income tax benefit (expense)	429			(1,105	)	433		9		—		(234	)
NET (LOSS) INCOME	(141		)	(827	)	(45	)	101		771		(141	)
Other comprehensive income, net of income taxes	18			—		—		18		(18	)	18
COMPREHENSIVE (LOSS) INCOME	$	(123	)	(827	)	(45	)	119		753		(123	)

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		3,108		3,891		(129	)	6,870
Total operating revenue	—			—		3,108		3,891		(129	)	6,870
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		1,942		1,680		(129	)	3,493
Selling, general and administrative	4			3		942		259		—		1,208
Depreciation and amortization	—			—		356		662		—		1,018
Total operating expenses	4			3		3,240		2,601		(129	)	5,719
OPERATING (LOSS) INCOME	(4		)	(3	)	(132	)	1,290		—		1,151
OTHER INCOME (EXPENSE)
Interest income	—			—		12		1		—		13
Interest income (expense) - affiliates, net	1,260			1,890		(2,896	)	(254	)	—		—
Interest expense	(30		)	(397	)	(2	)	(12	)	—		(441	)
Loss on modification and extinguishment of debt	—			(44	)	—		—		—		(44	)
Equity in net (losses) earnings of subsidiaries	(815		)	(2,138	)	692		—		2,261		—
Other (expense) income, net	3			—		15		(4	)	—		14
Total other income (expense), net	418			(689	)	(2,179	)	(269	)	2,261		(458	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	414			(692	)	(2,311	)	1,021		2,261		693
Income tax benefit (expense)	11			(123	)	(2	)	(154	)	—		(268	)
NET INCOME (LOSS)	425			(815	)	(2,313	)	867		2,261		425
Other comprehensive income, net of income taxes	80			—		—		—		—		80
COMPREHENSIVE INCOME (LOSS)	$	505		(815	)	(2,313	)	867		2,261		505

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
OPERATING REVENUE
Operating revenue	$	—		—		3,558		4,747		(132	)	8,173
Total operating revenue	—			—		3,558		4,747		(132	)	8,173
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	—			—		2,249		2,045		(132	)	4,162
Selling, general and administrative	16			5		1,025		361		—		1,407
Depreciation and amortization	—			—		372		787		—		1,159
Total operating expenses	16			5		3,646		3,193		(132	)	6,728
OPERATING (LOSS) INCOME	(16		)	(5	)	(88	)	1,554		—		1,445
OTHER INCOME (EXPENSE)
Interest income	—			—		3		1		—		4
Interest income (expense) - affiliates, net	1,385			2,113		(3,215	)	(283	)	—		—
Interest expense	(36		)	(505	)	(2	)	(1	)	—		(544	)
Equity in net earnings (losses) of subsidiaries	(669		)	(2,033	)	757		—		1,945		—
Other (expense) income, net	(1		)	(39	)	2		(25	)	—		(63	)
Total other income (expense), net	679			(464	)	(2,455	)	(308	)	1,945		(603	)
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE)	663			(469	)	(2,543	)	1,246		1,945		842
Income tax benefit (expense)	14			(200	)	(2	)	23		—		(165	)
NET INCOME (LOSS)	677			(669	)	(2,545	)	1,269		1,945		677
Other comprehensive loss, net of income taxes	(86		)	—		—		(86	)	86		(86	)
COMPREHENSIVE INCOME (LOSS)	$	591		(669	)	(2,545	)	1,183		2,031		591

Schedule of Condensed Consolidating Balance Sheets

	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2	—	164		77		—		243
Restricted cash and securities - current	—		—	—		4		—		4
Accounts receivable	—		—	70		642		—		712
Advances to affiliates	16,852		23,957	7,744		2,707		(51,260	)	—
Note receivable - affiliate	1,825		—	—		—		—		1,825
Other	1		3	97		133		—		234
Total current assets	18,680		23,960	8,075		3,563		(51,260	)	3,018
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment	—		—	3,456		7,018		—		10,474
Accumulated depreciation	—		—	(320	)	(701	)	—		(1,021	)
Net property, plant and equipment	—		—	3,136		6,317		—		9,453
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,665		9,454		—		11,119
Restricted cash and securities	15		—	9		1		—		25
Customer relationships, net	—		—	3,823		3,744		—		7,567
Other intangible assets, net	—		—	409		1		—		410
Investment in subsidiaries	15,541		17,915	3,861		—		(37,317	)	—
Other, net	275		1,421	110		225		(1,332	)	699
Total goodwill and other assets	15,831		19,336	9,877		13,425		(38,649	)	19,820
TOTAL ASSETS	$	34,511	43,296	21,088		23,305		(89,909	)	32,291
LIABILITIES AND MEMBER'S EQUITY (DEFICIT)
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	1		5		—		6
Accounts payable	—		—	380		346		—		726
Accounts payable - affiliates	62		11	162		11		—		246
Accrued expenses and other liabilities
Salaries and benefits	—		—	189		44		—		233
Income and other taxes	—		4	72		54		—		130
Interest	11		78	1		5		—		95
Other	3		1	8		66		—		78

Advance billings and customer deposits	—		—	168		142	—		310
Due to affiliates	—		—	45,347		5,913	(51,260	)	—
Total current liabilities	76		94	46,328		6,586	(51,260	)	1,824
LONG-TERM DEBT	613		10,068	7		150	—		10,838
DEFERRED REVENUE AND OTHER LIABILITES
Deferred revenue	—		—	971		210	—		1,181
Deferred tax liability	56		—	841		637	(1,332	)	202
Other	—		—	197		172	—		369
Total deferred revenue and other liabilities	56		—	2,009		1,019	(1,332	)	1,752
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	33,766		33,134	(27,256	)	15,550	(37,317	)	17,877
TOTAL LIABILITIES AND MEMBER'S EQUITY (DEFICIT)	$	34,511	43,296	21,088		23,305	(89,909	)	32,291

	Level 3 Parent, LLC		Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations		Total
	(Dollars in millions)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	13	—	175		109		—		297
Restricted cash and securities - current	—		—	1		4		—		5
Accounts receivable	—		—	26		722		—		748
Accounts receivable - affiliates	—		—	60		4		(51	)	13
Assets held for sale	68		—	5		67		—		140
Advances to affiliates	16,251		21,032	—		5,200		(42,483	)	—
Note receivable - affiliate	1,825		—	—		—		—		1,825
Other	—		—	54		63		—		117
Total current assets	18,157		21,032	321		6,169		(42,534	)	3,145
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment	—		—	3,285		6,270		—		9,555
Accumulated depreciation	—		—	(48	)	(95	)	—		(143	)
Net property, plant and equipment	—		—	3,237		6,175		—		9,412
GOODWILL AND OTHER ASSETS
Goodwill	—		—	1,200		9,637		—		10,837
Restricted cash and securities	19		—	10		—		—		29
Customer relationships, net	—		—	4,324		4,521		—		8,845
Other intangible assets, net	—		—	378		—		—		378
Investment in subsidiaries	16,954		18,403	3,616		—		(38,973	)	—
Other, net	280		1,795	32		153		(1,771	)	489
Total goodwill and other assets	17,253		20,198	9,560		14,311		(40,744	)	20,578
TOTAL ASSETS	$	35,410	41,230	13,118		26,655		(83,278	)	33,135
LIABILITIES AND MEMBER'S EQUITY (DEFICIT)
CURRENT LIABILITIES
Current maturities of long-term debt	$	—	—	2		6		—		8
Accounts payable	—		1	323		371		—		695
Accounts payable - affiliates	11		—	—		81		(51	)	41
Accrued expenses and other liabilities
Salaries and benefits	—		—	109		27		—		136
Income and other taxes	—		—	55		45		—		100

Interest	11		91	—		7	—		109
Other	16		—	25		18	—		59
Advance billings and customer deposits	—		—	127		131	—		258
Due to affiliates	—		—	42,483		—	(42,483	)	—
Total current liabilities	38		92	43,124		686	(42,534	)	1,406
LONG-TERM DEBT	616		10,096	13		157	—		10,882
DEFERRED REVENUE AND OTHER LIABILITES
Deferred revenue	—		—	841		252	—		1,093
Deferred tax liability	648		—	870		465	(1,771	)	212
Other	1		1	103		165	—		270
Total deferred revenue and other liabilities	649		1	1,814		882	(1,771	)	1,575
COMMITMENTS AND CONTINGENCIES
MEMBER'S EQUITY (DEFICIT)	34,107		31,041	(31,833	)	24,930	(38,973	)	19,272
TOTAL LIABILITIES AND MEMBER'S EQUITY (DEFICIT)	$	35,410	41,230	13,118		26,655	(83,278	)	33,135

Schedule of Condensed Consolidating Statements of Cash Flows

	Level 3 Parent, LLC			Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(98	)	—	2,059		436		—	2,397
INVESTING ACTIVITIES
Capital expenditures	—			—	(527	)	(511	)	—	(1,038	)
Proceeds from the sale of property, plant and equipment and other assets	83			—	—		51		—	134
Net cash provided by (used in) investing activities	83			—	(527	)	(460	)	—	(904	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(7	)	—	(7	)
Distributions	(1,545		)	—	—		—		—	(1,545	)
Increase (decrease) due to from affiliates, net	1,545			—	(1,545	)	—		—	—
Net cash used in financing activities	—			—	(1,545	)	(7	)	—	(1,552	)
Net decrease in cash, cash equivalents and restricted cash and securities	(15		)	—	(13	)	(31	)	—	(59	)
Cash, cash equivalents and restricted cash and securities at beginning of period	32			—	186		113		—	331
Cash, cash equivalents and restricted cash and securities at end of period	$	17		—	173		82		—	272

	Level 3 Parent, LLC			Level 3 Financing, Inc.	Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(1	)	—	172		137		—	308
INVESTING ACTIVITIES
Capital expenditures	—			—	(110	)	(97	)	—	(207	)
Note receivable - affiliate	—			—	(1,825	)	—		—	(1,825	)
Net cash used in investing activities	—			—	(1,935	)	(97	)	—	(2,032	)
FINANCING ACTIVITIES
Payments of long-term debt	—			—	—		(1	)	—	(1	)
Distributions	(250		)	—	—		—		—	(250	)
Increase (decrease) due from/to affiliates, net	250			—	(250	)	—		—	—
Other	—			—	—		(2	)	—	(2	)
Net cash used in financing activities	—			—	(250	)	(3	)	—	(253	)
Net increase (decrease) in cash, cash equivalents, and restricted cash and securities	(1		)	—	(2,013	)	37		—	(1,977	)
Cash, cash equivalents and restricted cash and securities at beginning of period	33			—	2,199		76		—	2,308
Cash, cash equivalents and restricted cash and securities at end of period	$	32		—	186		113		—	331

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(61	)	(401	)	1,615		761		—	1,914
INVESTING ACTIVITIES
Capital expenditures	—			—		(667	)	(452	)	—	(1,119	)
Purchase of marketable securities	—			—		(1,127	)	—		—	(1,127	)
Maturity of marketable securities	—			—		1,127		—		—	1,127
Proceeds from sale of property, plant and equipment and other assets	—			—		1		—		—	1
Net cash used in investing activities	—			—		(666	)	(452	)	—	(1,118	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			4,569		—		—		—	4,569
Payments of long-term debt	—			(4,911	)	1		(7	)	—	(4,917	)
Increase (decrease) due from/to affiliates, net	57			743		(460	)	(340	)	—	—
Other	—			—		—		3		—	3
Net cash provided by (used in) financing activities	57			401		(459	)	(344	)	—	(345	)
Net (decrease) increase in cash, cash equivalents, and restricted cash and securities	(4		)	—		490		(35	)	—	451
Cash, cash equivalents and restricted cash and securities at beginning of period	37			—		1,710		110		—	1,857
Cash, cash equivalents and restricted cash and securities at end of period	$	33		—		2,200		75		—	2,308

	Level 3 Parent, LLC			Level 3 Financing, Inc.		Level 3 Communications, LLC		Other Non-Guarantor Subsidiaries		Eliminations	Total
	(Dollars in millions)
OPERATING ACTIVITIES
Net cash (used in) provided by operating activities	$	(49	)	(468	)	565		2,295		—	2,343
INVESTING ACTIVITIES
Capital expenditures	—			—		(704	)	(630	)	—	(1,334	)
Proceeds from sale of property, plant and equipment and other assets	—			—		1		2		—	3
Net cash used in investing activities	—			—		(703	)	(628	)	—	(1,331	)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—			764		—		—		—	764
Payments of long-term debt	—			(806	)	(1	)	(13	)	—	(820	)
Increase (decrease) due from/to affiliates, net	47			504		1,107		(1,658	)	—	—
Other	—			—		—		(3	)	—	(3	)
Net cash provided by (used in) financing activities	47			462		1,106		(1,674	)	—	(59	)
Net increase (decrease) in cash, cash equivalents, and restricted cash and securities	(2		)	(6	)	968		(7	)	—	953
Cash, cash equivalents and restricted cash and securities at beginning of period	39			6		742		117		—	904
Cash, cash equivalents and restricted cash and securities at end of period	$	37		—		1,710		110		—	1,857